1099B for Employee stock

[deni64]

I sold ESPP stock and RSU stock on the same date. My 1099B only lists this as one sale with unknown cost basis. When I tell TT this is stock acquired through an employee stock plan, it asks me to choose ESPP or RSU. How do I split this transaction and enter both the ESPP stock sale and the RSU stock sale?

[HelenC12]

Contact your employer for the breakdown or see if your W-2/paycheck has a breakdown. 

Restricted stock units (RSUs)  may be reported on your W-2.  Check your W-2, Box 14. Employers may use box 14 to enter RSU compensation.  

Your employer should have sent you Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), if you purchased ESPP stock during the tax year.

Once you sell the shares, the brokerage firm that handles your ESPP should send you Form 1099-B, which reports the sale. If the cost basis in box 1e is wrong, here's where you can use your 3922:

1. In TurboTax, search for 1099-b and select the link
2. Answer Yes on the Did you sell any of these investments in 2022? screen
3. Select Continue on the Get ready to be impressed screen
4. Either import your info from your bank or institution or select Enter a different way on the Let's import your tax info screen if you don't want to upload
   • If you chose not to upload, select Stocks, Bonds, Mutual Funds on the OK, let's start with one investment type screen and select Continue
5. On the Tell us about your 1099-B sales screen, answer the questions, and answer Yes under Do these sales include any employee stock?
6. Select Continue
7. Add your details from your 1099-B and select Continue

[deni64]

I guess my question wasn't clear. I know what the cost basis should be and what numbers I need to enter. I can't figure out how to enter them into TT. The problem is my 1099B shows one transaction for a sale which actually included both RSUs and ESPPs. For example the 1099B shows that I sold 1000 shares of stock. The cost basis box and the date acquired box both say "unknown" on the 1099B. This sale of 1000 shares included 600 ESPP shares and 400 RSU shares, but my brokerage company doesn't know that. The brokerage company doesn't have the background information on my stock purchases. TT imported this as one sale because that's what shows up on my 1099B. In TT I see where it shows the 1099B information and under the "Needs Info?" column it says "Yes". When I click the edit button, I can click through pages until it asks if this is a sale of employee stock. When I say yes, it wants me to select which type of employee stock this is from a list in TT, but it only lets me select one type. I cannot see how to tell TT that part of it is RSU and part of it is ESPP. How do I split the transaction in TT and show that part of it is a sale of RSU and part is ESPP?

[DianeW777 · Accepted solution]

You could delete it and then enter it as two separate sales so that you can separate the RSUs from the ESPPs on your return. Alternatively, you can enter the entire cost basis for both and keep the records so that you have the correct information for the future cost basis for regular tax and, if applicable, alternative minimum tax (AMT) basis.

@deni64 

[deni64]

Thank you, DianeW777. That is what I ended up doing. Since TT had downloaded my 1099, it was difficult for me to figure out how to enter the two sales after I deleted the one I was having questions about. But I finally got the sales added back in. All is good now. Thank you!